Government ‘should build 75,000 new homes and let them out on the cheap to help families buy’

Think-tank says tenants should be offered 'living rent' to help them set money aside for a deposite

By RYAN SABEY, Political Correspondent

3rd September 2016, 10:00 pm

Updated: 3rd September 2016, 9:43 pm

THE GOVERNMENT should build 75,000 new low-rent homes to help working people on to the property ladder, according to a Conservative think-tank.

Tenants would be offered a long-term tenancy for security and pay a reduced “living rent” allowing them to put money aside for a house deposit.

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Tenants would be offered a long-term tenancy for security and pay a reduced 'living rent' under proposal

The residents would then be offered the chance to buy their home after two years.

Research by Conservative campaign group Renewal show that the average 2 bed flat in Enfield, north London, costs just over £1,250.

Under the new scheme that would be reduced to £462.

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Scheme would allow residents to put money aside for a house deposit

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David Skelton, Director of Renewal, said: “The shortage of affordable housing is arguably the single biggest domestic crisis facing the UK.

“Hard working people on low incomes across Britain are seeing their wages disappear as private rents increase year on year.

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“A Conservative Living Rent which gives people on low incomes a chance to put enough money away to save for a deposit to buy their own home should be at the heart of the Prime Minister’s social justice agenda.”